I’m surprised Delta was running NABs at 2% margin. Then again, not totally shocked given how they handle competition.
But squeezing margins on Varun was the wrong move. In my view, they just destroyed value in the market — _vakadira zvavo jecha_. If they couldn’t have it all, no one could have any.
Varun can easily call on their big capital backers to double down, which they’re already doing by pushing into larger spaces. Will Delta match that by just squeezing the market dry of value again? Not sure, but if they do, it’ll be a masterpiece of a blunder.
Delta doesn’t need to react to Varun this way. Maintain operational efficiency, price right, and protect value. I’m not sure of the exact market size, but I’m confident it can accommodate both players respectfully — everyone can eat.
Like someone smart once said: the world can handle everyone’s need, but not everyone’s greed. Delta is arguably Zim’s most important company. We all need and hope Delta succeeds, but they won’t do it by poisoning the water they themselves will need to drink from.
Well, it's not just about the competition. In part 1, we unpacked the impact of the sugar tax in more detail. That has eaten up a lot of margin, plus the Schweppes acquisition.
I think Delta may have felt its hand being forced as Varun came out very aggressive on pricing, and it worked, so Delta then responded as well, and with prices fairly similar, it seems people will opt for Coke.
Well Tina... Let me go back to Part 1 😂😂 it passed me for some reason. I guess at the end of the day I hope and wish Delta makes a case of they are not in Competition with Varun. Given their products.
First came price wars, then shrinkflation. I believe Delta has the most to loose and certainly can't compete on who is cheapest! but I guess we will see. For now let me go back to part 1.
I’m surprised Delta was running NABs at 2% margin. Then again, not totally shocked given how they handle competition.
But squeezing margins on Varun was the wrong move. In my view, they just destroyed value in the market — _vakadira zvavo jecha_. If they couldn’t have it all, no one could have any.
Varun can easily call on their big capital backers to double down, which they’re already doing by pushing into larger spaces. Will Delta match that by just squeezing the market dry of value again? Not sure, but if they do, it’ll be a masterpiece of a blunder.
Delta doesn’t need to react to Varun this way. Maintain operational efficiency, price right, and protect value. I’m not sure of the exact market size, but I’m confident it can accommodate both players respectfully — everyone can eat.
Like someone smart once said: the world can handle everyone’s need, but not everyone’s greed. Delta is arguably Zim’s most important company. We all need and hope Delta succeeds, but they won’t do it by poisoning the water they themselves will need to drink from.
Well, it's not just about the competition. In part 1, we unpacked the impact of the sugar tax in more detail. That has eaten up a lot of margin, plus the Schweppes acquisition.
I think Delta may have felt its hand being forced as Varun came out very aggressive on pricing, and it worked, so Delta then responded as well, and with prices fairly similar, it seems people will opt for Coke.
Well Tina... Let me go back to Part 1 😂😂 it passed me for some reason. I guess at the end of the day I hope and wish Delta makes a case of they are not in Competition with Varun. Given their products.
First came price wars, then shrinkflation. I believe Delta has the most to loose and certainly can't compete on who is cheapest! but I guess we will see. For now let me go back to part 1.
Reading this and hearing that Varun is the potential "unnamed" investor to take a controlling stake in Dairibord makes it more interesting haha
Ha ha when I saw that headline it all made sense. I guess credit to them for being proactive
Carlsberg and now Dairibord, I think they are setting that base for a very long-term tussle in the market
Thank you Tinashe